New record for Alberta oil production

Daily production reached 3.6 million barrels per day between January and June this year. According to the ATB bank, the oil sands account for 85% of this production.

At the same time last year, production reached 3.5 million barrels. If we compare to 10 years ago, this was around 2.3 million barrels per day.

Chief Canadian Market Analyst at S&P GlobalKevin Birn explains this new record by the rise in the price of oil as well as by the capacity and efficiency that this sector has achieved over the last decade.

Little by little, companies can respond fasterhe says, adding that production in the second half of 2022 is likely to be even higher.

The longer-term situation is less clear, however, judges Kent Fellowsassistant professor at the School of Public Policy from the University of Calgary, especially considering the climate legislation efforts in Canada and the United States.

He mentioned the Canadian government’s consultations regarding an emissions cap in the oil and gas sector.

There is a big question mark there as to how this will affect this sector. If it affects it and results in production cuts, what is it going to mean not only for the Canadian economy but also for the Alberta economy in general? asks Mr. Fellows.

With information from Paula Duhatschek

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